The parent company of Antalis and Arjowiggins requests trading halt of its shares at the Euronext Stock Exchange in Paris.
On 7 March, Sequana filed for the opening of judicial settlement (procédure de redressement judiciare) proceedings with the Commercial Court of Nanterre. According to Sequana, the petition is meant to turn the current safeguard proceedings (procédure de sauveguarde) into a formal receivership proceeding.
Sequana blames its decision on the recent ruling by the Court of Appeal in London in the BAT-Sequana litigation case which ordered the company to make €135m in remedy payments to British American Tobacco (BAT): "This request is based on the inability for Sequana [...] to file a sauvegarde plan enabling it to pay off the debts taken into consideration and to finance the observation period pending the decision of the Supreme Court in England which, subject to Sequana being permitted to appeal, will likely not be handed down before a minimum 13 months' time-limit," the company explained in yesterday's announcement. Sequana was previously ordered by the Court of Nanterre to file a safequard plan until 17 May 2019.
Under the French insolvency law, redressement judiciare is a court supervised recevership proceeding aimed at rescuing the company, maintaining the business and jobs and clearing its debts. Sequana expects the Court of Nanterre to make a decision on the admission to judicial reorganisation proceedings within the next 15 days.
Trading of Sequana shares on the Euronext Stock Exchange in Paris is suspended until further notice.
This article is part of our free coverage on Sequana, Antalis and Arjowiggins.
Print and e-paper subscribers can read an in-depth article in the next issue of EUWID Pulp and Paper on 13 March 2019.